As a home state, Tennessee has it all. Whether you’re looking to pack up and settle down in the forests of the Great Smoky Mountains or the streets of Memphis (either of which are incredible places to call home, if we do say so ourselves!), there are a few things to consider before determining the best mortgage lender to use in Tennessee.
These include:
- The loan’s rate, and whether it’s fixed or adjustable (ARMs)
- The offered benefits (such as tax-deductible interest)
- The mortgage lender’s client and online experience
- And ultimately, how trusted the lending company is
While purchasing a new home can definitely be overwhelming, picking the right mortgage company will help you feel more confident in your decision—and it’ll help make the process a whole lot easier, too!
Want the best mortgage lenders specific to Nashville, Tennessee? Head here instead!
Steps to getting a home loan in Tennessee
1. Get your financial records ready.
Almost all mortgage lenders will ask to review your financial records to determine your eligibility for a loan. The specific documents a mortgage company will ask to see vary a little between different companies and even different situations.
However, in general, you should be prepared to offer your tax returns, pay stubs, bank statements, and credit history. You may also want to prepare some sort of proof about your renting history if you’re an aspiring first-time homeowner.
Finally, if you’re receiving a cash gift from a friend or family member to help you purchase a home, there are some regulations to keep in mind. Only family members (as long as they can prove a standing relationship with the homebuyer) and home loan programs are allowed to provide gifts for buyers. Occasionally, friends are allowed to give gifts, but that is dependent on the loan.
The gift giver must provide a formal down payment gift letter that includes the borrower’s name, donor’s name and contact information, donor’s relationship to the borrower, the gift amount, and address of the property being purchased. It must also state that the borrower is not required to pay the gift back. This is especially important, because paying back this money is considered mortgage or loan fraud.
2. Determine what loan you can qualify for.
Once you’ve gotten your financial documents together, it’s time to figure out what kind of loan you may be eligible for. The terms of a loan are important, since they’ll determine how much interest you’ll have to worry about in the long run.
Don’t worry: a great mortgage lending company will help you through this process. Or you can check to see what kind of loan you could qualify for through an in-person consultation or an online estimator, but this step is really what a mortgage company is there for. They’ll help you understand what loans you can qualify for, and which makes the most financial sense for you and your family.
3. Choose the best Tennessee mortgage lender for you.
Last but definitely not least, you’ll want to finally pick a mortgage company that’s right for you. This part can seem a bit scary and challenging, but as long as you’ve done your research, you should be well-equipped to make an informed decision.
Don’t be afraid to negotiate with the lenders that you’re interested in, either. Mortgage companies want your business too, and chances are that you’ll get a bit of a better interest rate by letting them know you’ve got options.
Mortgage lenders have some flexibility when it comes to the rates they can offer you, and if you’re using one of the best in Tennessee, it’s their goal to help you. The Home Loan Expert was founded with a defiant spirit to make securing a loan a positive experience with the goal of putting people and community first. And you can fill out their application right now!
Best Tennessee Mortgage Lenders in 2022
| Mortgage Lender | Min. Down Payment | ||||
| The Home Loan Expert |  | 3% | Learn More | ||
| Hero Loan |  | 0% | Learn More | ||
| SoFi |  | 3–5% | Learn More | ||
| PNC Bank |  | 3% | Learn More | ||
| Carrington Mortgage Services |  | 3.5–5% | Learn More | ||
| AmeriSave |  | 3.5–5% | Learn More | ||
| SunTrust (Truist) |  | Via consultation | Learn More | ||
| Better |  | Via consultation | Learn More | ||
| Rocket Mortgage |  | 3.5% | Learn More | ||
| Freedom Mortgage |  | Via consultation | Learn More | ||
| New American Funding |  | 3.5–3.5% | Learn More |
The Home Loan Expert
Founded with the goal of making obtaining a loan as positive of an experience as possible, The Home Loan Expert is a fantastic option for your next mortgage. While other mortgage lenders might prioritize corporate profit and bureaucracy, working with The Home Loan Expert actually feels like working with another human being – one who cares about you as a person, and not just a borrower.
Loans & Services:
The Home Loan Expert offers a huge variety of different loan options for different situations, including:
- Adjustable-Rate Mortgage
- Bank Statement Mortgage
- Cash-Out Refinance
- Conventional Loan
- Debt Consolidation
- FHA Loan
- Fixed-Rate Loan
- Home Purchase Loan
- Jumbo Home Loan
- No Income Verification Loan
- Rate-and-Term Refinance
- Refinance
- Union Loan
- USDA Loan
- Zero Dollar Down Loan
Pros:
- Excellent customer service and experience
- Flexible in-person or online closing options
- Low minimum down payments
Cons:
- The variety of loan options can be extensive, so make sure to do your research or reach out to the team for guidance
Minimum Down Payment: Options available with down payments as low as 3%
Contact The Home Loan Expert today to get started on your 5-Minute Loan Approval* application!
Hero Loan
Hero Loan–one of the fastest growing lending platforms in the country–serves active duty military, veterans, and their families. Their mission is to provide fast, personalized service while also supporting veteran-owned businesses and events.
As a direct-endorsed VA Lender, Hero Loan can close VA loans in as little as 14 days–compared to most lenders that take up to 60 days. They underwrite all VA loans in house, meaning lower mortgage rates and no upfront or out of pocket costs—that includes the appraisal.
Loans & Services
- VA Loans
- VA Streamline Refinance or IRRRL
- Conventional loan refinancing
- VA Cash-Out Refinance
- FHA Loans
Pros:
- Quicker turnaround time than competitors
- Complete all VA paperwork for clients
- Underwrite all VA loans in-house
- No appraisal or out-of-pocket fees
Cons:
- Services are for active-duty military, veterans, and their families only
Minimum down payment:
$0 down payment
SoFi
Founded in 2011, SoFi is a young but popular mortgage lender that has served almost three million clients since its inception. While SoFi offers a chic and modern experience for borrowers and existing customers, those looking for the best rates for home loans in Tennessee may have better luck at another mortgage lender.
Loans & Services:
- Mortgage
- Mortgage Refinance
- Cash-Out Refinance
- Jumbo Loans
- Home Equity
Pros:
- Convenient rate calculator
- Modern and sleek looking website
- Lower minimum down payments for first-time homebuyers
Cons:
- Relatively inexperienced compared to other mortgage lenders
- Fewer loan options compared to competitors
- High minimum down payments for those who don’t qualify for lowered rates
Minimum Down Payment: 5%, but 3% for qualifying first-time homebuyers
PNC Bank
Serving Americans for over 160 years, PNC Bank has a history of experience and knowledge in mortgage lending. However, the company’s age shows in its practices and website, meaning younger clientele wanting to send in their application may want to look elsewhere.
Loans & Services:
- Fixed-Rate Mortgage
- Adjustable-Rate Mortgage
- Jumbo Loans
- FHA Loans
- Specialized Loans
Pros:
- Competitive minimum down payment and interest rates
- Long history of offering loans
- Flexible loan options
Cons:
- Older business practices
- No comparison tool between loan options
- Non-transparent closing costs
Minimum Down Payment: 3% for fixed and adjustable-rate mortgages
Carrington Mortgage Services
Founded in California in 2007, Carrington Mortgage Loans & Services offers a variety of home loans across three loan servicing locations across the country. As a subsidiary of Carrington Holding Company, Carrington Mortgage places extra emphasis on shareholder satisfaction but claims to remain committed to customer care, for existing clientele and prospective clientele alike.
Loans & Services:
- Conventional Loans
- FHA Loans
- USDA Loans
- First Time Buyers Loans
- Adjustable-Rate Mortgage Loans
Pros:
- Variety of loan options to choose from
- Low credit scores acceptable
- Convenient comparison tool
Cons:
- Higher minimum downpayment than competitors
- Greater emphasis on corporate focus
- No interest rate estimator
Minimum Down Payment: Ranging from 3.5%-–5% depending on loan type
AmeriSave
With over 19 years of experience in 49 states (the exception being New York) AmeriSave Mortgage offers a variety of loan options. While using the website is not always a good online experience (as the site contains some technical errors), AmeriSave is still an option to consider.
Loans & Services:
- Fixed-Rate loans
- Adjustable-Rate Loans
- Cash-Out Refinancing
- FHA Loans
- USDA Loans
Pros:
- Long history of experience
- Variety of flexible loan options
- Convenient interest rate calculator
Cons:
- Slightly broken website
- Higher minimum down payment options compared to competitors
- No first-time buyers options
Minimum Down Payment: 3.5%–5% depending on the type of loan
Truist (Previously SunTrust)
SunTrust (or Truist, as it’s known after a recent corporate rebranding) is an enormous company formed through the merger of two large lenders. Nevertheless, it offers decent customer care and a few loan options, including home equity lines of credit.
Loans & Services:
- 30-Year Fixed Mortgage
- 15-year Fixed Mortgage
- 30-Year Jumbo Mortgage
- 30-Year FHA Mortgage
- Home Equity Line of Credit
Pros:
- Transparent interest rates
- Convenient pre-approval process
- First-time buyer programs
Cons:
- Limited number of loan options
- Higher minimum down payments for some loans
- Confusing branding scheme
Minimum Down Payment: Varies by loan type, available through consultation
Better
First founded in 2014, Better is a young company with an emphasis on technology and innovation to help streamline the mortgage process. Partnered with companies such as Godman Sachs and American Express, Better remains a consideration despite more experienced competitors.
Loans & Services:
- Mortgages
- Title insurance
- Homeowners insurance
Pros:
- Streamlined online pre-approval process
- Convenient mortgage rate calculator
- Available resources to help consumers learn about mortgage application process
Cons:
- Types of loans on offer isn’t very clear
- Younger company with less experience
Minimum Down Payment: Information only available through pre-approval process
Rocket Mortgage
The goal of Rocket Mortgage–formerly known as Quicken Loans before 2021–is to help make the mortgage process somewhat easier for borrowers by using modern technology and business practices.
While interest and minimum down payments are a tad higher than some competitors, Quicken Loans is still worth keeping in mind for the average mortgage consumer.
Loans & Services:
- FHA Loan
- 30-year Fixed Mortgage
- 15-Year Fixed Mortgage
- Adjustable-Rate Mortgage
- Jumbo Loans
- FHA Streamline
Pros:
- Easy to navigate online interface
- Flexible fixed-rate mortgage options
- Convenient comparison tool
Cons:
- Provides little information on interest rates
- Higher minimum down payment rates than competitors
Minimum Down Payment: Starting at 3.5% for FHA loans
Freedom Mortgage
Founded in 1990, Freedom Mortgage is an established mortgage lender. The company aims to provide clients with exceptional service backed by the philosophy of freedom through loans by allowing borrowers to pursue the home of their dreams.
While a limited selection of loans with obscure minimum down payment policies makes that goal fall a little flat, Freedom Mortgage is still worth noting, though it is likely not the best option for getting a home loan in Tennessee.
Loans & Services:
- Conventional loans
- FHA Loans
- USDA Loans
Pros:
- Convenient calculator options, including a home affordability and refinance calculator
Cons:
- Limited loan options
- 2–5% closing costs
- Loan limits constrain how much you can borrow
- Minimum down payment information unclear
Minimum Down Payment: Available upon consultation
New American Funding
New American Funding promises to make the American Dream of owning a home within arm’s reach for potential clients, through its varied roster of loans and services. However, it’s worth noting that the higher than competitive interest rates and minimum down payments might dampen those aspirations of getting a home loan in Tennessee.
Loans & Services:
- Fixed-Rate Mortgage
- Conventional loan
- USDA Loan
- FHA Loan
- Buydown Loan
- ARM Loan
- Reverse Mortgage
Pros:
- Lots of loan options to choose from
- Easy quote request mechanism
- Convenient customer service contact options
Cons:
- Higher interest rates than competitors
- Website is a little cluttered
- Not equity line of credit option
Minimum Down Payment: 3%–3.5% depending on type of loan
Conclusion: What is the best mortgage lender for Tennessee?
With a trusted lender by your side, you can offset a lot of the expenses that come with buying a house for the first time.
And whether you’re looking for a conventional loan, a guaranteed USDA loan, FHA loan, or even a VA loan, The Home Loan Expert is without a doubt the best option for getting a home loan in Tennessee. By choosing them as your preferred lender, you can help make your home buying experience as smooth and pain-free as possible—while also saving some money in the process.
With a variety of options like conventional loans, adjustable interest rates and a beautiful, worry-free online experience, you’ll be assured of peace of mind with their friendly team of professionals standing behind you.
To get started with buying the home of your dreams, why not get started with your application at The Home Loan Expert today?
The Home Loan Expert
